{"id":112379,"date":"2002-09-27T00:00:00","date_gmt":"2002-09-26T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/sanyukt-nirmata-vs-delhi-development-authority-on-27-september-2002"},"modified":"2018-08-12T14:30:18","modified_gmt":"2018-08-12T09:00:18","slug":"sanyukt-nirmata-vs-delhi-development-authority-on-27-september-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/sanyukt-nirmata-vs-delhi-development-authority-on-27-september-2002","title":{"rendered":"Sanyukt Nirmata vs Delhi Development Authority on 27 September, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Sanyukt Nirmata vs Delhi Development Authority on 27 September, 2002<\/div>\n<div class=\"doc_citations\">Equivalent citations: AIR 2003 Delhi 68, 101 (2002) DLT 137<\/div>\n<div class=\"doc_author\">Author: S Mukerkee<\/div>\n<div class=\"doc_bench\">Bench: S Mukerjee<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>S. Mukerkee, J.<\/p>\n<p>1. The short point which arises for<br \/>\nconsideration in this case is whether the Judgment<br \/>\nDebtor\/DDA has satisfied the decretal amount which fell<br \/>\ndue under the decree.\n<\/p>\n<p>2. The position, as has crystalised between<br \/>\nthe parties, and as relied upon by both the learned<br \/>\ncounsel, is contained in Annexure A to the reply filed by<br \/>\nDelhi Development Authority to EA No. 338\/2000.\n<\/p>\n<p>3. It is admitted by Delhi Development<br \/>\nAuthority that the award amount Along with interest up to<br \/>\nthe date of award, was Rs. 5,22,002\/62\/-, which figure is<br \/>\nalso accepted by learned counsel for the Decree Holder.\n<\/p>\n<p>4. Thereafter however while calculating the<br \/>\ninterest @ 12% for the period from 22.1.92 (the day<br \/>\nafter the date of Award), till 17.11.99 (which was the<br \/>\ndate of deposit of amount in this Court), the Delhi<br \/>\nDevelopment Authority went on to calculate the interest<br \/>\nonly on the awarded principal amount of Rs. 4,06,214.58\/-,<br \/>\nand not upon the total awarded amount inclusive of<br \/>\ninterest up to the date of Award (viz. not on<br \/>\nRs. 5,22,002.62).\n<\/p>\n<p>5. Due to the above said difference in the<br \/>\nbase figure for computation of interest, an amount of<br \/>\nRs. 1,17,000.00\/- is still outstanding as per the<br \/>\ncalculations of the Decree Holder, who has taken the base<br \/>\nfigure for calculation of pendente lite and future<br \/>\ninterest, to be, Rs. 5,22,002.62\/- viz. the total amount<br \/>\nup to the date of Award inclusive of interest as per<br \/>\naward.\n<\/p>\n<p>6. It is submitted by learned counsel for<br \/>\nthe Delhi Development Authority that there cannot be<br \/>\ninterest on interest, and as such their calculation<br \/>\n(Delhi Development Authority&#8217;s calculation), is correct<br \/>\nand the entire said amount having been paid, nothing<br \/>\nfurther remains due towards the Decree Holder.\n<\/p>\n<p>7. Section 3 of the Interest Act, 1978<br \/>\nstipulates that interest cannot be granted on interest.<br \/>\nHowever, learned counsel for the Decree Holder while<br \/>\nrelying on the judgment of the Apex Court in  <a href=\"\/doc\/1922312\/\">Oil &amp;<br \/>\nNatural Gas Commission v. M.C. Clelland Engineers S.A.<\/a><br \/>\n(1999) 4 CCC 327, has urged that interest becomes part of<br \/>\nthe principal amount, and therefore on that awarded<br \/>\ninterest, further interest up to the date of payment,<br \/>\nwould accrue in terms of the above-said judgment of the<br \/>\nApex Court.\n<\/p>\n<p>8. He has further relied upon the judgment<br \/>\nof the Single Judge of the Punjab &amp; Haryana High Court<br \/>\nreported as  <a href=\"\/doc\/24214\/\">Union of India v. Harbans Singh Tuli &amp; Sons<br \/>\nBuilders (P) Ltd. AIR<\/a> 2000 Punjab and Haryana 313  where<br \/>\nhe submits that it has been categorically held that the<br \/>\nUnion of India was liable to pay interest even on the<br \/>\npendente lite interest.\n<\/p>\n<p>9. In my view there is a fallacy in the<br \/>\nsubmission of learned counsel for the Decree Holder.\n<\/p>\n<p>10. It is a settled position under law that<br \/>\ninterest is awarded in the nature of damages for delayed<br \/>\npayment, and there can-not be an award of further damages<br \/>\non damages. For this purpose, it would be necessary to<br \/>\nexamine carefully the decision of the Apex Court in  Oil &amp;<br \/>\nNatural Gas Commission (supra). The arbitrators in that<br \/>\ncase, while dealing with the claims before them, had<br \/>\nawarded interest as a claim, and thereafter had also<br \/>\nawarded interest @ 12% from the date of the award till<br \/>\nrealisation. The submission of learned senior counsel<br \/>\nfor Oil &amp; Natural Gas Commission was that since the<br \/>\nclaims themselves were having interest component,<br \/>\ntherefore the arbitrators could not have awarded further<br \/>\ninterest on those claims.\n<\/p>\n<p>11. The Apex Court held that if any interest<br \/>\nfor the delay in making, say invoice payments, is dealt<br \/>\nwith as a claim and is awarded as part of a claim,<br \/>\nthereafter there can also be an award of interest on<br \/>\nawarded claim up to the date of the payment, since that is<br \/>\nthe interest as compensation for the delay in the payment<br \/>\nof the awarded amount. Therefore interest can always be<br \/>\ngranted in relation to the total amount awarded under the<br \/>\ntotal number of claims, including any claim which<br \/>\nthemselves are including determination of invoice price<br \/>\nwith interest.\n<\/p>\n<p>12. However that does not mean that once the<br \/>\ncumulative amount awarded under the different heads of<br \/>\nclaim, are added together to constitute the principal<br \/>\nawarded amount, thereafter it will become a continuously<br \/>\nincreasing base figure for working out the further<br \/>\ninterest awarded after the award, and also after the<br \/>\ndecree.\n<\/p>\n<p>13. Learned counsel for the Decree Holder<br \/>\nsubmits that while calculating the further interest from<br \/>\nthe date of the decree, with interest up to date of<br \/>\ndecree, whatever is the cumulative amount up to the date<br \/>\nof the decree with interest up to date of decree, should<br \/>\nbe taken as the base figure. This is totally<br \/>\nunsustainable. Once the principal amount awarded is<br \/>\nknown, in relation to compensation for the time taken for<br \/>\nthe said payment to reach the decree holder, the only<br \/>\nentitlement can be to interest at the rate granted by the<br \/>\nCourt, but always with the base figure remaining as the<br \/>\ncumulative amount of the award, and not the amount<br \/>\ninclusive of interest as on the date of the decree.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Sanyukt Nirmata vs Delhi Development Authority on 27 September, 2002 Equivalent citations: AIR 2003 Delhi 68, 101 (2002) DLT 137 Author: S Mukerkee Bench: S Mukerjee JUDGMENT S. Mukerkee, J. 1. The short point which arises for consideration in this case is whether the Judgment Debtor\/DDA has satisfied the decretal amount which [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-112379","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sanyukt Nirmata vs Delhi Development Authority on 27 September, 2002 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/sanyukt-nirmata-vs-delhi-development-authority-on-27-september-2002\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sanyukt Nirmata vs Delhi Development Authority on 27 September, 2002 - Free Judgements of Supreme Court &amp; 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